KENYA · GUIDE 0864 · EDITION 4.7
Crochet bag making in Kenya: Pricing, Costing and Cash Flow Example
Editorial update: 28 October 2026 · Business planning reference · Review scope
Use one accepted sale unit throughout
Work through a fictional KSh 8,400.00 invoice against KSh 6,920.00 of selected cost lines; distinguish the invoice from collected cash.
This is a planning reference for crochet bag making. The order below is an invented teaching case. It is not a completed customer job, an operating approval or a prediction of demand or earnings.
The example offer and its boundary
Fictional crochet order: two unlined flat adult tote bags with target bodies 250 × 280 mm, each assembled from two original single-crochet rectangles and two purchased 500 mm webbing handles. In a washed sample gauge of sixteen stitches and eighteen rows per 100 mm, each panel starts with forty stitches and fifty rows, giving about 250 × 278 mm before joining. Gauge is a worked design assumption, not an observed result. Do not promise a load capacity or call the bag waterproof.
Charging basis to confirm: bag. The rates and quantities below are teaching assumptions. Even a previously recorded listing is not adopted here as a current quotation or an earnings forecast.
Itemised arithmetic
| Selected input/activity | Quantity | Assumed unit rate | Selected cost |
|---|---|---|---|
| 100 g yarn balls | 6 | KSh 400.00 | KSh 2,400.00 |
| 500 mm webbing handles | 4 | KSh 100.00 | KSh 400.00 |
| Care labels and paper sleeves | 2 | KSh 60.00 | KSh 120.00 |
| Crochet and finishing hours | 16 | KSh 250.00 | KSh 4,000.00 |
| Calculation | Teaching result |
|---|---|
| Selected cost total | KSh 6,920.00 |
| Priced/accepted output | 2 example units |
| Assumed selling price | KSh 4,200.00 |
| Assumed invoice | KSh 8,400.00 |
| Difference before excluded costs and tax | KSh 1,480.00 |
Batch cost = KSh 6920; allocated cost per sale unit = KSh 3,460.00; assumed revenue = 2 × KSh 4200 = KSh 8400; pre-tax scenario surplus = KSh 1480. Two bags are sale units; four rectangles are components. Labour is explicitly substantial and must be timed in the pilot. Yarn quantity and rates are fictional until a swatch and local quote exist. Add any machine attachment work, failed samples, tax and delivery; do not price handmade work from yarn alone.
Check cash timing and a weaker outcome
TRAINING-0864: a fictional order for the scoped offer in section 01, using 2 priced units at KSh 4,200.00 each. Buyer group: fashion shoppers. No buyer was contacted and no order was completed.
Teaching invoice = 2 x KSh 4,200.00 = KSh 8,400.00. The selected input lines in section 06 total KSh 6,920.00; their difference from this assumed invoice is KSh 1,480.00 before excluded costs and tax.
For cash-timing practice only, suppose a buyer pays a 30% advance of KSh 2,520.00. The invoice balance is KSh 5,880.00. If the selected input bill is paid before the balance arrives, additional cash of KSh 4,400.00 is needed after applying the advance. The advance is counted once, not again at final collection.
On full collection, total receipts are KSh 8,400.00. Cash against the selected example bill is KSh 1,480.00 before other payments. If a hypothetical 10% increase in the largest selected line (Crochet and finishing hours) adds KSh 400.00, the unchanged invoice leaves KSh 1,080.00 against that revised bill.
If the customer instead leaves 10% of the invoice unpaid, KSh 840.00 is a receivable. Cash collected is KSh 7,560.00 and collected cash less the selected bill is KSh 640.00. This differs from invoice margin; do not spend the unpaid amount as though it is already cash.
The scenario is complete only as a teaching record of the stated lines. Add actual excluded startup and operating costs using file 12, and replace every assumed rate before relying on a quote. Use measured accepted output for the actual invoice; unaccepted output is not automatically chargeable.
For an actual quote, add all relevant excluded costs, use measured accepted output, and compare amounts from the same period. An unpaid invoice balance is not available cash. A deposit held for an uncompleted obligation is not automatically earned income.
References and their limits
Lion Brand: How do I substitute one yarn for another?
Gauge swatching for yarn substitution; the examples are original designs rather than copied manufacturer patterns. Reference check recorded 2026-10-26.
Lion Brand: What is blocking, and how do I do it?
Finishing and shaping knitted/crocheted fabric; actual yarn care limits still apply. Reference check recorded 2026-10-26.
Yarnspirations: Boho Inspired Crochet Bag
Publisher bag-project reference; no reproduction of its pattern and no assumption of resale permission. Reference check recorded 2026-10-26.
Recorded references support only the scope stated beside them. They do not prove current supplier stock, a local quotation, actual buyer demand, operator competence or the feasibility of this particular business. Later editorial changes do not refresh earlier source-check dates.
Prepared by Business Starter Guides using AI-assisted drafting and desk editorial checks. Independent operator trials and specialist certification are not claimed. See the editorial method for the review scope.
Editorial method and evidence limits